Blackstone in Talks to Take Stake in Energy Transfer Partners Assets

By Dana Mattioli and Dana Cimilluca

Private-equity firm Blackstone Group LP is in talks to take a stake in assets owned by Energy Transfer Partners LP, according to people familiar with the matter, as the natural-gas pipeline owner seeks to complete its $21 billion sale to a sister company.

Blackstone is discussing joining on the deal with Jamie Welch, the people said. Mr. Welch was a key lieutenant of Energy Transfer’s Chairman and Chief Executive Kelcy Warren before the men fell out over another deal that collapsed earlier this year.

It isn’t clear how big the latest deal would be but one of the people said it could be valued at about $5 billion or more.

Energy Transfer Partners is a master limited partnership that owns and operates around 62,500 miles of natural-gas and natural-gas-liquids pipelines. It isn’t clear which of its assets are part of the potential deal with Blackstone and Mr. Welch and why the Dallas company would do it. It is still possible the talks will fall apart before a deal is reached.

Last month, Sunoco Logistics Partners LP agreed to buy Energy Transfer for $21 billion in stock. The deal would bring together two of the five publicly traded partnerships controlled by Mr. Warren. Should it be completed, the merger would simplify Mr. Warren’s network of oil-and-gas pipeline companies, something analysts and investors have urged.

–Alison Sider contributed to this article.

Write to Dana Mattioli at dana.mattioli@wsj.com and Dana Cimilluca at
dana.cimilluca@wsj.com

Breaking the story

Dana Mattioli and Dana Cimilluca broke the news that private-equity firm Blackstone Group LP is in talks to take a stake in assets owned by Energy Transfer Partners LP. It isn’t clear how big the deal would be but one source said it could be valued at about $5 billion or more.

Timeline

December 22, 2016, 12:51

Blackstone in Talks to Take Stake in Energy Transfer Partners Assets — Sources

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